Extended Family – A family that consists of more than just the parents and children. Included in the extended family are uncles, aunts, grandparents, nephews, cousins or even less closely associated “relations.” In western countries the extended family rarely exists. The household consists of parents, children and an aunt is too small to be called an extended family.

Group – A frequently used concept in sociology and psychology:
1. Two or more people who satisfy the following conditions: the relationships between the members are independent;the behavior of the one influences the behavior of the other; and/or, the members share an ideology.
2. A collection of individuals who possess some common characteristics and who strive for a common goal. See also: Sociology/Psychology

Group Comparison – A comparison between two groups of individuals. It normally occurs on the basis of a statistically representative value, such as an average.

Group Dynamics – 1. An area of study that concentrates upon the group. It concentrates on the basic structure of the group, the laws that determine its development and that of larger units (such as institutions).
2. The dynamic whole of (desired and undesired) interactions between the members of a discussion group. Factors can appear or be studied that would not appear in other kinds of investigation. See also; Group/Group Discussion/Interaction

Material Culture – Together with the immaterial culture that which forms the culture. It includes, for instance, chop sticks, prisons, oil tankers and garden gates. See also: Immaterial culture/Culture

Norm – A written or unwritten rule of behavior. One can distinguish universal, special and formal norms:
Universal norm: A norm that is valid for everyone in a particular region, for example, not walking naked on the street, helping people in need, not injuring others.

Formal norm: A norm that is established by means of rules, codes and laws: stopping for a red traffic light.

Special Norm: A norm that is valid for only a particular social group (soldiers, priests, pop singers: wearing a uniform, remaining celibate, owning a yacht). See also: Culture

Organization – Structure of a group of people (with various sub-groups). This structure can last a long time and possess its own ideology – a business enterprise (General Motors), a hospital (Mayo Clinic), the R.A.F. See also: Group

Participating Observer – A researcher who takes part in the group that he is studying. He thus becomes a group member, for example, a researcher “shops” with a housewife.

Position – 1. Sociology and psychology: Special relationships (centered upon a particular individual).
2. Computers: One of the 12 parts (holes) of the column of a punch card. See also: Sociology/Psychology/Punch card

Prestige – The influence that an individual exercises through status, success, know-how. Prestige can only be enjoyed when an audience values the qualities shown by the individual. See also: Status

Profession – Syn: Occupation
The daily activity that ensures an individual’s income (often refers to occupations that requires advanced training – the law, teaching etc,) An individual remains linked to his profession: an unemployed lawyer does not ceased to be a lawyer. One’s a profession makes possible the ascent of the social ladder and is closely linked to education, income and social class. See also: Social classified

Professional Stratification – Syn: Occupational Stratification
A ranking of profession/occupation from low to high. These are often experimentally determined by sampling in the population. The stratification is closely related to the education, status, prestige and incomes of the various professional groups. See also: Stratification/Occupational classification

Reference Group – A group with an individual associates or compares himself. A group that people wish to join or a group of which people enjoy being a member, e.g., an exclusive club. Not everyone associates with the group of which he forms a part: most conscripted soldiers generally wish to leave the army as soon as they can. Reference implies that the norms and values of the group are those that the individual will gladly adopt, e.g.,wearing a tie, carrying a portable radio (“ghetto blasters”).

Regional Norm – Syn: Local Norm
A norm that is valid only in a particular place or region. See also: Norm

Role – A frequently used concept in sociology and psychology: the composite of norms and expectations that one has for people in a particular situation. The same person can fulfill many roles: father, consumer, chairman of a club, salesman, manager. See also: Norm

Role Behavior – The behavior of a role player: he or she acts according to what is expected of him (unless he or she is a rebel). The role behavior of a consumer includes a search of information, reading advertisements, buying products, etc. See also: Role

Roleplay – The playing of a particular role together with other players, By the imitation of another person’s behavior (expected or stereotyped), one learns to recognize it better; one also learns how others observe and interpret one’s own behavior. Role play can be important in such situations as buyer and seller, interviewer and interviewee. In training sessions- for instance, in training interviewers- this technique is sometimes used: the interviewer learns via the technique of role play how to better interpret the behavior of an interviewee. See also: Role/Briefing

Cadre – A salesperson who receives a relatively large amount of latitude, support, and attention from his or her sales manager. Cadres receive special treatment from their managers from their managers because they are perceived to be particularly competent, motivated, trustworthy. In return for the special treatment, cadres are expected to perform assignments that are outside the formal job description. Cadres are the opposite of hired hand salespeople.

Call Frequency – The number of sales calls per time period made on a particular customer. Comment: The call frequencies assigned to customer are used by sales people to plan their own route and sales call schedules.

Call Option – In foreign currency market, a call option gives the buyer of the call the right, but not the obligation, to buy the foreign currency up to the call’s expiration date.

CALLPLAN – A decision calculus model providing a decision support system for determining the amount of time that a salesperson should spend with current customers and sales prospects. The model’s parameters are calculated using subjective responses to a series of point estimate questions concerning the likely impact of various numbers of customer visits on sale from each customer (Lodish 1971) Evidence regarding the model’s effectiveness has been reported by Fudge and Lodish.

Call Purchase – A purchase of the commodity of a specified quality under a contract providing for the seller to choose a day in the future on which the price in the contract will be fixed on the basis of a stipulated number of points above or below the price of a designated future on that chosen day. Same as: Seller’ Call See: Call Sale

Call Report – A salesperson’s report to a supervisor of calls made to prospects or customers during a given time or in a specific Market. A recent study indicates that although over half of the sales managers responding used call reports and were reasonably well satisfied that they were receiving useful data, the indicated areas of importance were very diverse. Inspired by data collecting methods some consider superior to call reports, which now take between 10 and 20 hours of a salesperson’s time per week to complete, a considerable amount of debate is emerging as to reality of the values to be derived from the call report in comparison to benefits from other uses of salespersons’ time and from better morale.

Call Sale – A sale of a commodity of specified quality under a contract providing for the buyer to choose a day in the future on which the price in the contract will be fixed on the basis of a stipulated number of Points above or below the price of a designated Future on that chosen day. Same As: Buyer’s Call See: Call Purchase

Call System – A method used in retailing areas where the salesperson’s compensation is based at least in some measure on the amount of business he completes. Each Salespersons is given an equal chance to wait on prospects or customers. Very frequently used for major appliances, furniture, cars.

Camera Ready – Copy that is prepared so that without further processing it can be used to create plates needed for Offset printing. Abbreviated: CR

Campaign – Same as: Advertising Campaign

Campaign Plan – A series of mailings of a variety of pieces over a period of weeks, all designed to arouse interest in a coming event, such as the opening of a new facility or the introduction of an innovation. This type of plan ends with a final mailing presenting the announcement for which interest and curiosity have been built. Plans of this sort must be of duration not so long as to create boredom, since that would negate the intent of creating suspense. Sometimes called, as applicable, a “Teaser Campaign.” See: Direct Mail Advertising

Canalization – In selling, the building by a salesperson or advertiser on some association, fear, or bit of information possessed by a prospect or customer and thereby bringing about a dramatic behavior change.

Cancellation –

Canned Presentation – A sales talk to be memorized and rehearsed for presentation word for word exactly as written. Especially useful where many prospects must be approached under similar circumstances, such as house-to-house selling. See: Variable Presentation

Vertical Cooperative Advertising – Advertising in which the retailer and other previous marketing channel members (e.g., manufacturers or wholesalers) share the cost.

Vertical Integration – 1. (channels of distribution definition) The combination of two or more separate stages in the channel through ownership, including mergers or acquisitions. 2. (environment definition) The expansion of a business engaged in earlier or later stages of marketing a product. in forward vertical integration, manufacturers might acquire or develop wholesaling and retailing activities. in backward vertical integration, retailers might develop their own wholesaling or manufacturing capabilities.

Vertical Market – A situation in which an industrial product is used by only one or a very few industry or trade groups. the market is narrow but deep in the sense that most prospective customers in the industry may need the article.

Vertical Marketing System – 1. (channels of distribution definition) The channel system consisting of horizontally coordinated and vertically aligned establishments that are professionally managed and centrally coordinated to achieve optimum operating economies and maximum market impact. The three types of vertical marketing systems are administered vertical marketing system, contractual marketing system, and corporate vertical marketing system. 2. (physical distribution definition) A long-term channel relationship in which two or more firms acknowledge and desire interdependence.

Vertical Merger – The joining or combination of two or more companies at different stages in the production or marketing process, such as the combination of IBM, a manufacturer of computers, with Intel, a manufacturer of microprocessors.

Vertical Price-Fixing – A conspiracy among marketers at different levels of channel to set prices for a product.

Visual Merchandising – A situation in which reliance is upon the use of informative labels, descriptive signs, or a self service type of display, as opposed to dependence upon a salesperson for information.

Wagon Distributor – A wholesaler whose inventory of merchandise is carried on trucks that are operated by driver-salespeople. The retailer’s requirements for merchandise are determined at the time of the sales call and orders are filled immediately from the stock carried on the truck. It is a somewhat archaic team.

Want Book – 1. The information collected by retail salespeople to record out-of stock or requested merchandise. 2. A notebook in which store employees record names of items called for by customer but are not in stock.

Want Slip – A slip on which the salesperson records customer requests for items that cannot be supplied from stock.

Warehouse Retailing – The retailing of certain types of merchandise, particularly groceries, drugs, hardware, home improvement, and home furnishings, in a superstore type of warehouse atmosphere. The facilities are typically in low-rent, isolated buildings with a minimum of services offered.

Warranty – A statement or promise made to the customer that a product being offered for sale is fit for the purpose being claimed. The promise concerns primarily what the seller will do if the product performs below expectations or turns out to be defective in some way. The promise (warranty) may be full (complete protection) or limited (some corrective steps), under terms of the Magnuson-Moss Warranty-Federal Trade Commission Improvement Act (1975). It may also be expressed (orally or in writing) or only implied, and it may have time restrictions.

Waybill – An official shipping document that identifies shipper and consignee, routing, description of goods, cost of shipment, and weight of shipment.

Wholesale Merchant – An establishment primarily engaged in buying and selling merchandise in the domestic market and performing the principal wholesale functions.

Wholesale Price Index (WPI) – A relative measure maintained by the U.S. government of average price changes in commodities sold in wholesale markets in the United States.

Wholesaler – A merchant establishment operated by a concern that is primarily engaged in buying, taking title to, usually storing and physically handling goods in large quantities, and reselling the goods Usually in smaller quantities) to retailers of to industrial or business users.

Wholesaler Sponsored Cooperative – A form of contractual vertical marketing system that is an example of forward integration. retailers achieve vertical system advantages by affiliating with a sponsoring wholesaler.

Will-Call– The products ordered by customers in advance of the time delivery is desired.

Word-of-Mouth (WOM) – 1. (consumer behavior definition) This occurs when people share information about products or promotions with friends. 2. (consumer behavior definition) The information imparted by a customer or individual other than a sponsor. It is sharing information about a product, promotion etc. between a consumer and a friend, colleague, or other acquaintance. for example, a consumer may tell a friend about a particularly good price he or she received on a product. Research has found that word-of -mouth communication about products is more likely to be negative than positive.

Yield Management – The practice of pricing to maximize the amount of revenue received per unit sold. it is commonly associated with the pricing practices of airline, hotels, and other seller of “perishable” products.

Zero Order Model – A probabilistic model in which the probability of concurrence of any given outcome at a particular point in time does not depend on any previous outcomes of the process. Models of this kind are often used to represent brand choice behavior or media exposure patterns ( Lilien and Kotler 1983). Evidence that this simple zero order assumption for brand choice behavior cannot be rejected, given empirical choice patterns has been provided by Bass, Givon, Kalwani, Reibstein and Wright (1984).

Zone Pricing – The delivered cost based on factory price plus averagd freight rate for the section or territory to which goods are shipped (same delivered cost to all in the zone).

Value Added by Marketing – The increase in value due to performance of marketing activities by a firm. Value added by marketing is computed by subtracting the market value of purchased goods from the market value of goods sold.

Value Adding Reseller )VARs) – Retail intermediaries who modify equipment, integrate several components into a system solution, or provide additional services to offer customized solutions to the customer. VARs are found especially in markets for computer equipment and other forms of information technology.

Value Analysis – 1. (industrial definition) An analytical procedure to study the costs versus the benefits of a currently purchased material, component, or design in order to reduce the cost/benefit ratio as much as possible. It is also called value engineering. When performed by a seller, it is often referred to as value-in use analysis. 2. (product development definition) A systematic study of the product wherein the analyst keeps asking, “Can the cost of this part, this subassembly, or this step be reduced in any way, or even eliminated?” Value analysis is usually performed by engineers who are seeking new, less expensive way to design or create the product being studied. It may be performed on the products the firm produces, or on products that it purchases from its supplier.

Value Based Pricing – A price setting process based on the value the product provides to the customer.

Value Chain Analysis – An approach to assessing the positions of competitive advantage. A value chain firs classifies the activities of a business into the discrete steps performed to design, produce, market, deliver, and service a product. Supporting these specific value-creation activities are firm-wide activities such as procurement, human resources management, technology, and the infrastructure of system and management that ties the value chain together. To gain advantage a business must either perform enough of these activities at a lower cost to gain an overall cost edge while offering a parity product, or perform them in a way that leads to differentiation and a premium price.

Value Pricing – A method of setting prices based upon the perceived value the product gives a specific consumer or group of consumers.

Value-Expressive Function of Attitudes – A function of attitudes that allows the individual to express his or her self concept. The value-expressive function is served by attitudes that demonstrate one’s self image to others. it is one of the functions of attitudes proposed by the functional theory of attitudes.

Value-In-Exchange – The amount of money or goods actually paid for a product or service.

Value-in-Use – The amount of money or goods that buyers would be willing to pay for a product or service. Value-in-use is always greater than value-in-exchange.

Value-in-Use Pricing – A method of setting prices in which an attempt is made to capture a portion of what a customer would save by buying a firm’s product.

Variable Cost, Average – The sum of all variable costs, i.e, those costs that vary directly with the number of units produced and marketed, divided by the number of units currently produced.

Variable Cost, Total – The sum of all costs directly incurred by production and marketing of a given number of units.

Variable Import Levies – The import charges levied when the prices of imported products would undercut those of domestic products. The effect of these levies would be to raise the price of imported products to the domestic level.

Variable Price Policy – a policy of adjusting prices to different customers, depending on their relative purchasing power or bargaining ability.

Variety – The number of different classifications of goods carried in a particular merchandising unit. It implies generically different kinds of goods.

Variety Seeking – the choice of an alternative in order to experience diversity or variety in consumption over time. For example, someone may eat a Butterfinger candy bar for a snack one day, but choose a Baby Ruth candy bar the next day specifically to get something different.

Variety Store – An establishment primarily selling a wide variety of merchandise in the low and popular price range usually in limited assortments, such as stationer, gift items, women’s accessories, toilet articles, light hardware, toys, housewares, and confectionery. Variety stores were formerly known as limited price variety stores because merchandise was usually not sold outside some specified price ranges.

Vending Machine – The retail sale of goods or services through coin-or currency-operated machines activated by the ultimate consumer-buyer.

Vendor Analysis – 1. (industrial definition) An organized effort to assess strengths and weaknesses of current or new suppliers to assure supplier quality. It is usually undertaken by the purchasing department. 2. (retailing definition) An analysis of sales, stocks, markups, markdowns, and gross margin by vendors.

Venture – A risky new product project or business start-up. Ventures are often staffed by managers who are pulled out of their regular functional jobs and assigned to the projects. The venture may be totally in-house (located on the customary premises, close to the regular operation) or it may be spun out (relocated at some point well apart from the ongoing operation). If carried out in cooperation with another firm, it is a joint venture.

Venture Team, in New Product Development – This is similar to a new product task force, but with an important difference: The team is independent of any functional department. members stay with the project until it is abandoned or commercialized. In the latter case they may become the management team responsible for running the new product as a separate business. The venture team is authorized to obtain assistance as needed from functional departments or to purchase external assistance. A venture team usually reports to a top corporate officer. Comment: A venture team is also appropriate for totally new products that usually require more time, expense, and risk than managers of currently operating businesses are willing to support. A venture team requires long-term commitment and support from corporate management.

Unfair Competition – 1. (environments definition) The rivalry among sellers through the use of practices deemed to be unfair by judicial, legal, or administrative agencies such as selling products below cost to drive a competitor out of business, or dumping goods in foreign markets. It is defined in antitrust laws as act to mislead and confuse consumers, such as the deceptive substitution of one product for another in order to gain unfair advantage over competitors. 2. (retailing definition) A business practice that is not considered ethical in a trade and industry. According to federal and other laws, it is a certain situation and/or practice that unduly injures competitors and works contrary to the public interest as interpreted in the business community and the nation’s laws.

Unfair Trade Practices Acts – Sales below-cost statutes that vary widely from state to state and most frequently prohibit the sale of branded and unbranded goods below cost when the intent is to destroy competition or to injure a competitor.

Uniform Commercial Code – A code adopted by most states that provides consistency in commercial law and deals with all the aspects of a commercial transaction as well as other commercial matters such as bulk sales, investment securities, and the bank collection process.

Uniform Communication System (UCS) – A communications standard adopted by the food industry for electronic transmission of information between buyer and seller.

Uniform Freight Classification – A system that allows the grouping of related products into specific rate categories. These ratings are based on handling characteristics, bulk, value, and perishability of the product. These ratings are used as the basis for standardized rates for classes of products.

Unique Selling Proposition (USP) – An approach to develop the advertising message that concentrates on the uniquely differentiating characteristic of the product or service to be sold. The key idea is to concentrate on a characteristic of the product that is both important to the customer and a unique strength of the advertise product when compared to competing products.

Unit Control – The control of stock in terms of merchandise units rather than in terms of dollar value.

Unit Load – A shipment that contains multiple units but moves as a single entity. For example, shipment that are palletized or slipsheeted or containerized are unit load shipments.

Unit Packing – Packing merchandise in selling units (by manufacturer) so it can be sold from sample and delivered to the customer without repacking at the store.

Unit Pricing – Under unit pricing, products offered for sale include the price per unit such as per ounce, pound, or quart, in addition to the price of the product as packaged.

Unit Train – An entire train comprising a single product, typically a bulk commodity such as coal or grain. These trains are faster and less expensive to operate than traditional trains because the bypass railyards.

Unitary Price Elasticity – A special situation in which a cut in price increases quantity just enough that total revenue remains unchanged.

Universal Product Code (UPC) –1. (retailing definition) A national coordinated system of product identification by which a ten-digit number is assigned to products. the UPC is designed so that at the checkout counter an electronic scanner will read the symbol on the product and automatically transmit the information to a computer that controls the sales register. The code is called OCR-A. 2. (environments definition) A set of bars or lines, printed on most items sold in supermarkets and other mass retailing outlets, that permits computers at checkout counters to retrieve the price of the item fro its memory or data base. The data generated can be used for a wide variety marketing decisions such as inventory control, allocation of shelf space, advertising, pricing, and so on.

Unplanned Center – A cluster of retail stores within the city in which there is a structured internal pattern of locations, achieved by the independent decisions of store operating within the land market.

Unsought Good – A product which the consumer does not seek, either from lack of awareness or lack of interest in the particular attributes it has. Because most products are bought sought and unsought by different persons this category is not part of the basic classification of goods.

Unwholesome Demand – The desire for goods, services, and activities that are deemed to reduce individual and social welfare. Comment: Examples include the desire for illegal drugs, excessive amounts of alcoholic beverages, and driving at excessive speeds.

Use Up Rate – The volume or length of time required by a consumer to move from one purchase occasion to another.

Users’ Expectations Method – A method of forecasting sales that relies on answers from customers regarding their expected consumption or purchases of the product. It is also known as buyers’ intention method.

Utility – 1. (general definition) The state or quality of being useful. 2. (economic definition) The usefulness received by consumers from buying, owning, or consuming a product.

Valence – A salesperson’s desire to receive additional amounts of a given reward (e.g., a pay increase). Valences can influence salespeople’s level of motivation.

Validity – A term applied to measure instruments reflecting the extent to which differences in scores on the measurement reflect true differences among individuals, groups, or situations in the characteristic it seeks to measure, or true differences in the same individual, group, or situation from one occasion to another rather than constant or random errors.

Value Added – 1. (environment definition) An economic concept referring to the value that a firm adds to the cost of its inputs as a result of its activities, thereby arriving at the price of its outputs. 2. (product development definition) A measure of the contribution to a product’s worth by any organization that handles it on its way to the ultimate user. Value added is measured by subtracting the cost of a product (or the cost of ingredients from which it was made) from the price that the organization got for it. For resellers, this means the firm’s gross margin; for manufacturing firms, it means the contribution over cost of ingredients. Presumably whatever work that firm did is reflected in the higher price someone is willing to pay for the product, hence that firm’s value added.

Traffic Item – A consumer product in demand and with high replacement frequency that regularly brings traffic to a store or department.

Traffic Management – A corporate function that is responsible for determining the mode of transportation and utilization of transportation equipment as well as general administration of the movement of goods by the firm. A traffic manager usually heads the traffic management function.

Transaction Code – The unique identifying number that defines the specific data being transmitted via an electronic data interchange transaction. Numbers are assigned to various types of document transactions such as purchase orders, warehouse shipping orders, and motor carrie shipment information.

Transaction Value – The subjectively weighted difference between the buyer’s reference price and the actual price to be paid.

Transactions Cost Analysis – An approach to analyze the economics of vertical relationships. The basic premise is that firms will internalize those activities for which other providers have an advantage. The costs transactions are determined by the frequency with which they recur, the environmental uncertainty surrounding them, and the specificity of the asset they require.

Transfer (Interdepartmental Merchandise) – An intrafirm transaction accounting for the movement of merchandise from one selling department or location to another, which is a transfer-in for the department or other selling unit receiving the goods and a transfer-out for the department or location sending the goods.

Transfer Pricing – The pricing of goods and services that are sold to controlled entities of the same organization, e.g., movements of goods and services within a multinational or global corporation.

Transformational Advertising – The advertising that associates product usage with certain feelings, images, or meanings that then transform the experience of using the product. For example, a transformational ad could make the experience of using a product warmer or more exciting.

Transformational Leadership – A leadership style wherein sales managers use inspiration and charisma, seek to intellectually stimulate the salespeople, and treat each salesperson as an individual. The goal of transformational leadership is to move the salespeople beyond their own self interests toward those of the organization. The inspiring and charismatic sales manager can create feelings of extraordinary esteem, affection, admiration, respect, and trust within sales personnel. Intellectually stimulating salespeople entails creating a reediness for changes in salespeople’s thinking and encouraging the sales personnel to think of ne ways to solve old problems. Treating salespeople as individuals involves establishing and exhibiting genuine concern for each salesperson.

Transit Rate – A rate that allows the through shipment of goods to be interrupted for intermediate processing. even though the goods are stopped enroute to their ultimate destination.

Trend Analysis – The use of analytical techniques, such as time series analysis, to discern trends.

Trend Extrapolation – The projection of patterns identified in data about the past into the future.

Trial – A psychological term denoting the number of a practice run, such as a 5 trial learning experience, or a series of repetitions of a learning experience. It is also used to imply a sampling of a product before repurchase.

Trial Close – An attempt made by the salesperson to close the sale.

Trickle Down Theory – The belief that clothing fashions trickle down from the higher socioeconomic classes to the lower classes as consumers attempt to emulate individuals with greater social status. Research evidence generally does not support a trickle down theory. The diffusion of fashion appears to trickle across social classes rather than trickle down or up.

Turnkey Operation – Also called system selling, this is a complete system solution, in which the seller provides the buyer with a complete working operation, including all equipment, assembly, operating expenses, personal training, and the like. It is common in foreign licensing in which a fir provides experts to set up a foreign company, ultimately turning the operation over to the host entirely.

Twig – A store (smaller than a branch) that specializes in a particular category or few categories of merchandise when the firm does not believe a wider offering in that market is reasonable -e.g., a home furnishing twig.

Two Column Tariff – A system of tariffs in which the initial single column of duties is supplemented by a second column of duties that shows reduced rates agrees through tariff negotiations with other countries.

Two Step Flow of Communication – The belief that the process of influence of communications material is not directly from the communicator to the audience or interpreters, but rather influence is a two step process from the mass communications, such as advertising, to the opinion leader in the group and from the opinion leader to the other individuals.

Type I Error – The rejection of a null hypothesis when it is true; it is also known as alpha error.

Type II Error – The failure to reject a null hypothesis when it is false; it is also known as beta error.

Typesetting – The process of choosing appropriate type faces (or fonts), reproducing the headlines and other text in an appropriate size (or point size), and placing the type in the proper place on the page.

Ultimate Consumer – A consumer who buys goods for personal or family use or for household consumption.

Unadvertised Brand – A brand that is not advertised. Frequently unadvertised brands are the private brands of retail food chains.

Understored – A market condition that exits when a market has too few stores to provide satisfactorily for the needs of the consumer.

Uneven Exchange – An exchange of goods made by a customer when the value of the new goods received is different from that of the goods returned.

Total Cost of Goods Sold – The gross cost of goods sold plus alteration room and workroom and workroom net cost, if any, less each discount earned on purchases.

Total Revenue – The price per unit multiplied by sales volume and summed over all products and services.

Tracker – A model using three waves of survey data to predict 12-month test market sales for a new consumer nondurable product. The approach views potential customers as proceeding sequentially through stages of awareness, initial product trial, and repeat purchase. The overall prediction of sales overtime is constructed by predicting the time trend of these three quantities (awareness-trial-repeat) using the survey data (Blattberg and Golanty 1978). The effectiveness of the model’s product awareness predictions has been investigated by Mahajan, Muller, and Sharma (1984).

Trade Acceptance – A noninterest-bearing bill of exchange or draft covering the sale of goods, drawn by the seller on, and accepted by, the buyer.

Trade Allowance – A short-term special offer, made by marketers to channel members as an incentive to stock, feature, or in some way participate in the cooperative promotion of a product.

Trade Area – 1. (geography definition) a geographical area containing the customers of a particular firm or group of firms for specific goods or services. 2. (retailing definition) A geographic sector containing potential customers for a particular retailer or shopping center.

Trade Balance – A sub-balance of a country’s balance of payments showing the relationship between total exports and total imports for a given period of time.

Trade Card – A special card issue to the customer as successive purchase are made. It entitles the holder to a prize or purchase credit when a certain total is reached. it is also called a punch card.

Trade Coupon – A coupon that may only be redeemed at a particular store or group of stores.

Trade Credit – The supplying of goods (by wholesalers and manufacturers) on terms that are intended to permit sale by the retailer before payment is due.

Trade Deficit – The difference between the value of products exported to a country and the products imported from that country over a given period of time.

Trade Discount – The discount allowed to a class of customers (manufacturers, wholesalers, retailers) on a list price before consideration of credit terms. It applies to any allowance granted without reference to date of payment.

Trade Dress – The total appearance and image of a product including size, texture, shape, and color combination. Duplication of trade dress of another good is actionable under common law and the Lanham Trademark Act.

Trade Name – A trademark that is used to identify an organization rather than a product or product line.

Trade Premium – A prize, usually merchandise, given by jobbers’ retailers for their cooperation in achieving sales.

Trade Sales Promotion – Marketer’s activities directed to channel members to encourage them to provide special support or activities for the product or service.

Trade Salesperson – A salesperson employed by the manufacturing firm whose primary responsibility is to sell to channel members.

Trade Secret – According to the 1993 Restatement of Torts, a trade secret may consist of any formula, pattern, device, or compilation of information that is used in one’s business and that gives the person an opportunity to obtain an advantage over competitors who do not know or use it. A trade secret may be any commercially valuable information, whether in the form of an invention, an industrial or commercial idea, or a compilation of data. Trade secret law is common law doctrine and varies somewhat from state to state.

Trade Show – 1. (sales definition) An exhibition in which a number of manufacturers display their products. 2. (sales promotion definition) A periodic gathering at which manufacturers, suppliers, and distributors in a particular industry, or related industries, display their products, and provide information for potential buyers (retail, wholesale, or industrial.)

Trademark – A legal term meaning the same as brand. The trademark identifies one seller’s product and thus differentiates it from products and other sellers. A trademark also aids in promotion and helps protect the seller from imitations. A trademark may be eligible for registration, as it is in the United States through the Patent and Trademark Office of the Department of Commerce. If registered, the trademark obtains additional protection, mainly exclusive use, but special efforts are necessary to keep the registration and the exclusive use.

Trading Area – A district the size of which is usually determined by the boundaries within which it is economical in terms of volume and cost for a marketing unit or group to sell and/or deliver products. It is also referred to as shopping radius.

Trading Stamps – A type of continuity plan in which a consumer collects stamps or certificates issued with each purchase at participating retail stores. Stamps are generally redeemed for prizes from a catalog.

Trading-Up – 1. A seller’s practice of handling and promoting more expensive or higher-grade merchandise in order to elevate the prestige of the firm. 2. A salesperson’s effort to interest a customer in better-grade and more expensive goods than the customer expects to buy.

Traffic Audit Bureau – An organization that audits freight bills tendered to the buyer of the transportation service for accuracy. If inaccurate, a claim is filed by the payer of the transportation service to recover cost of overcharges.

Traffic (Customer) – When applied to retailing, this refers to those people who frequent the store (or shopping area) within a particular period of time. Traffic may be heavy, light or medium.

Tariff – A published set of rates for transportation and distribution services.

Tariff System – The system of duties applied to goods and services from foreign countries. It may be a single rate of duty for each item applicable to all countries or groups of countries or two or more rates applicable to different countries or group of countries.

Task Force, in New Product Development – This task force (or team) is established for a new product idea to shepherd it through the various development stages until it is abandoned or approved for commercialization. The task force is composed of personnel (on loan, full time or part time) from departments such as marketing. research and development, and finance. Other specialists may join the task force as needed. The task force disbands when the project is abandoned or when commercialization is authorized. Comment: The advantage of the task force is that disagreements among functional specialists are more readily resolved when members must work together to achieve goals. Also, they have direct communications with their own functional departments which have new product assignments. The disadvantage is that there may not be enough competent people to staff the task forces assigned to the many new product projects going on to the many new product projects going on at the same time.

Team Selling – The practice of involving a group of people familiar with the view points and concerns of key decision makers of the customer’s organization to sell and service a major account. Comment: This is especially prevalent in the sale of complex industrial products, where a particular salesperson cannot be an expert on all aspects of the purchase process.

Tear Sheet – An advertisement torn from a newspaper or magazine, sent to an agency or advertiser as evidence of insertion.

Technological Base – The technical skills and equipment available to a country for converting its resources to a standard of living.

Technological Change – The discovery and application of new products, new and improved machines, tools, equipment and method of production.

Term of Access – All the condition that apply to the importation of goods manufactured in a foreign country such as import duties, import restrictions or quotas, foreign exchange regulations and preference arrangements.

Terms of Purchase – The condition in a purchase agreement with a vendor that include the type(s0 of discounts available and responsibility for transportation costs.

Terms of Sale – The conditions in a sales contract with customers including such issues as charges for alterations, delivery, or gift wrapping, or the store’s exchange policies.

Territorial Allocation – the rights given to the wholesaler or retailer (by the manufacturer) to sell the manufacturer’s product or brand in a defined geographic area that is, at least to some extent, removed, isolated, or protected, from other wholesalers and retailers also selling the manufacturer’s items.

Territory Management – The development and implementation of a strategy for directing selling activities toward customers in a sales territory aimed at maintaining the lines of communications, improving sales coverage, and minimizing wasted time. territory management includes the allocation of sales calls to customers and the planning, routing, and scheduling of he calls.

Territory Potential – An estimate of the maximum possible sales opportunities that could be realized in a sales territory.

Tertiary Trade Zone – The outermost ring of a trade area. It includes customers who only occasionally shop at a store or shopping center. It is also known as fringe trade area.

Test Market – The trading area selected to test a company’s new or modified product, service, or promotion.

Test Marketing – One form of market testing. It is usually involves actually marketing a new product in one or several cities. The effort is totally representative of what the firm intends to do later upon national marketing (or regional market rollout). Various aspects of the marketing plan may be tested (e.g., advertising expenditure level or, less often, product from variants), by using several pairs of cities. Output is a mix of learning, especially a sales and profit forecast. In some areas, test marketing is currently being stretched to include scanner market testing, in which the marketing activity is less than total, but the term is best confined to the full-scale activity.

Third Party Provider – A for-hire firm that performs logistics service functions such as warehousing and transportation. The majority of these firms customize their offerings to meet individual customer needs.

Third Sector – Collectively, all private nonprofit marketers.

Thumbnail – A rough sketch of the layout for a piece of print advertising.

Time Rate of Demand – The quantity of product that the market will absorb at a particular price per period of time.

Time Series – The historical records of the fluctuations of economic variables.

Time Series Analysis – An approach to developing a sales forecast that relies on the analysis of historical data to develop a prediction for the future.

Time Utility – The increased satisfaction created by marketing through making products available at the time consumers want them.

Tip Sheet – A summary material to be covered in a publicly interview or photo shoot.

Token Order – The placing of a small order with the possibility of a larger one in the future.

Ton-Mile – A transportation term denoting movement of one ton, i.e., 2,000 pounds, one mile.

Total Cost (TC)– 1. (economic definition) The sum total fixed cost and total variable cost for a given level of output. 2. (physical distribution definition) In a physical distribution system, total cost includes all the costs of transportation, warehousing, order processing, packaging, etc.

Subliminal Advertising – Advertising messages that are supposedly disguised so that they are not able to be overly seen and/or heard yet are nevertheless effective in persuading members of the audience. there is no scientific evidence to indicate that this approach is effective communication and, if there were convincing evidence of effectiveness, the approach would likely be prohibited as deceptive business practice.

Subliminal Perception – 1. (consumer behavior definition) A psychological view that suggests that attitudes and behaviors can be changed by stimuli that are consciously perceived. 2. (consumer behavior definition) The perception of or response to a stimulus that the perceiver is unaware of perceiving and can not recognize. The stimulus is below the perceiver’s limen, or perceptual threshold.

Submissive Selling Style – A selling style often used by excellent socializers who like to spend talking about non-business activities. These salespeople usually are reluctant to obtain commitments from prospects.

Substitute Product – The products that are viewed by the user as alternatives for other products. The substitution is rarely perfect, and varies from time to time depending on the price, availability, etc.

Suggested Retail – A recommend list price submitted by a manufacturer or other vendor to a retailer.

Summated Rating – A self-report technique for attitude measurement in which subjects are asked to indicate their degree of agreement or disagreement with each of a number of statements; a subject’s attitude score is total obtained by summing the scale values assign to each category checked.

Supply House – A middleman selling industrial goods to manufacturers or other business or institutional users. Generally, this is a distributor, wholesaler, or jobber.

Supply-Pushed Innovation – Innovation that is based at least partly on the abilities and outputs of technical engineering and research and development functions. It involves making what the organization is able to make. It is commonly called technology-driven innovation and contrasts with demand-pulled innovation.

Surcharged – An additional charge for performing service that is assessed over and above the base rate.

Sustainable Competitive Advantage – A sustainable competitive advantage exists when a firm is implementing a value-creating strategy not simultaneously being implemented by any current or potential competitors and when these other competitors are unable to duplicate the benefits of these strategy. the sustainability of a competitive advantage depends upon the possibility of competitive duplication. Invisible assets may allow a firm to sustain a competitive advantage.

Switch Trading – A mechanism that can be applied to barter or countertrade. A professional switch trader, switch trading house, or bank steps into a simple barter arrangement, clearing arrangement or countertrade arrangement when one of the parties is not willing to accept all the goods or the clearing credits in a transaction. the switching mechanisms provides a secondary market for countertraded or bartered goods and credits.

Symbolic Interaction – A sociological theory that focuses on the formation of the self through interactions with other people. The meaning attached to products is a function of the interaction of the self and others to the object.

Syncratic Decision Making – A pattern of decision making within a family in which most decisions are made jointly by both spouses.

Syndicated Research – The information collected on a regular basis that is then sold to interested clients (for example, Nielsen Television Ratings).

Synectics – A joining together of different and seemingly irrelevant elements and people into a problem-stating and problem-solving group.

Systematic Sample – A probability sample in which every kth element in the population is designated for inclusion in the sample after a random start.

Systems Selling – An approach aimed at providing better service and satisfaction to customers, through the design of well integrated groups of interlocking products, together with the implementation of a system of production, inventory control, distribution, and other services, to meet major customers’ needs for a smooth-running operation.

Tabulation – A procedure by which the number of cases that fill into each of a number of categories are counted.

Tachistoscope – A device that provides the researcher timing control over a visual stimulus; in marketing research, the visual stimulus is often a specific advertisement.

Take One Pad – A packet coupons, refund blanks, or other promotional offers attached to or placed near the product being promoted.

Take Transaction – The sale of goods that are turned over to the customer immediately upon closing the sale rather than delivered.

Target Market – The particular segment of a total population on which the retailer focuses its merchandising expertise to satisfy that sub-market in order to accomplish its profit objectives.

Target Market Identification – The process of using income, demographic, and lifestyle characteristics of a market and census information for small areas to identify the most favorable locations.

Target Return Pricing – A method of pricing that attempts to cover all costs and achieve a target return.

Straight Salary Plan – A sales force compensation plan that relies exclusively on salary as a financial reward for salespeople. A salary is a fixed sum of money paid at regular intervals. the amount paid to the salespeople is a function of the amount of time worked rather than any specific performance. Two sets of conditions favor the use of straight salary compensation plan. These are (1) when management wishes to motivate people to achieve objectives other than short-run sales volume, and (2) when the individual salesperson’s impact on sales volume is difficult to measure in a reasonable time.

Strategic Alliances – Cooperation strategy between companies to jointly purchase a common goal. They are also referred to as collaborative agreements or global strategic partnerships.

Strategic Business Unit (SBU) – From a strategy formulation point of view, diversified companies are best thought of as being composed of a number of businesses (or SBU’s). These organizational entities are large enough and homogenous enough to exercise control over most strategic factors affecting their performance. They are managed as self contained planning units for which discrete business strategies can be developed.

Strategic Fit – The degree to which the growth strategy that allows the business to achieve its performance objectives can be implemented within the constraints imposed by past strategic commitments, resource availability, and other historical rigidities. Often, trade offs and changes are required in the growth strategy prior to implementation.

Strategic Intent – An ambitious organizational goal that is not proportional to current resources and capabilities and remains stable overtime. To ensure long-term success, management envisions a desired leadership position and then establishes the criterion that the organization will use to chart its progress. The concept encompasses an active management process that includes focusing the organization’s attention on the essence of winning; motivating people by communicating the value of the target; leaving room for individual and team contributions; sustaining enthusiasm by providing new operational definitions as circumstances change; and using intent consistently to guide resource allocations.

Strategic Management Process – An approach to management that incorporates the following elements: (1) focusing planning process on the search for competitive advantage; (2) the integration of strategic planning with operational and functional level; (3) orientation toward funding and implementing strategies rather than discrete projects; and (4) greater emphasis and continued focus on strategic issues.

Strategic Market Planning – The planning process that yields decision in how a business unit can best compete in the markets it elects to serve. Strategic market decisions are based on assessments of product market and pertain to the basis for advantage in the market. The plan that is the output of the process serves as blueprint for the development of the skills and resources of a business unit and specifies the results to be expected. In many companies these are called strategic business plans.

Strategic Planning – The consideration of current decision alternatives in light of their probable consequences over time. The practice of strategic planning incorporates four distinguishing features: (1) an external orientation; 92) a process for formulating strategies; (3) methods for analysis of strategic situations and alternatives; and (4) A commitment to action.

Strategic Sales Program – A program that organizes and plans the company’s overall personal selling efforts and integrates these with the other elements of the firm’s marketing strategy. The strategic sales program should take into account the environmental factors faced by the firm.

Strategic Thrust – A compelling theme that knits together otherwise independent activities focuses the energies of functional groups on things that matter in the market. The essence of this theme is a shared understanding of why the business is better than the competition and what has to be done to keep it in front.

Strategic Window – The limited time period in which the fit between the factors critical to success in a market and the distinctive competences of a business competing in that market is at an optimum. The implication is that business should prepare for the respond appropriately to the “opening” and “closing” of strategic windows.

Strategy – This describes the direction the business will pursue within its chosen environment and guides the allocation of resources and effort. It also provides the logic that integrates the perspectives of functional departments and operating units, and points them all in the same direction. The strategy statement for a strategic business unit is composed of three elements: (1) a business definition that specifies the area in which the business will compete; (2) a strategic thrust that describes whether a competitive advantage is to be gained by focusing the scope or by exploiting an asymmetry in the position of the business; and (3) supporting functional strategies that are activities designed for consistency and comparability with other activities and the strategic thrust.

Stratified Sample – A probability sample that is distinguished by the two-step procedure in which (1) the parent population is divided into mutually exclusive and exhaustive subsets and (2) a simple random sample of elements is chosen independently from each group or subset.

STRATPORT – A decision support system for the allocation of a firm’s financial resources across its strategic business units (SBUs). The approach models the impact of general marketing expenditures on both market share and on the firm’s cost structure. Given a specific portfolio strategy, the system can evaluate the profit and cash and cash flow implications of following the strategy overtime. Alternately, the approach can determine the optimal allocation of marketing expenditures across SBUs in order to maximize net present value over a specified time horizon.

Strict Liability – 1. (legislation definition) A doctrine under which a seller is held liable for injury caused by a defective product even though the seller exercised all possible care in the preparation and sale of the product and the user had not bought the product from or entered into any contractual relation with the seller. 2. (product development definition) An extreme variant of product liability 9in common practice today) in which the producer is held responsible for putting a defective product on the market. Under strict liability, there need to be no negligence, sale no longer has to be direct from a producer to user (privity of contact), and no disclaimer statement relieves the producer of this responsibility.